Supreme Court Issues Unanimous Decision Against FTC

House responds with bill to restore Commission’s restitution powers

House Bill 2668, which Congressman Cárdenas introduced last week, addresses the two significant judicial limitations to Section 13(b) of the FTC Act.

—Rebecca Kelly Slaughter, Acting Chairwoman, FTC

To the relief of many direct sellers, the U.S. Supreme Court issued a unanimous ruling in the closely-followed AMG Capital Management, LLC v. Federal Trade Commission case. 

In a April 22 decision authored by Justice Stephen Breyer, the court held that Section 13(b) of the FTC Act does not authorize the Commission to seek “equitable monetary relief such as restitution or disgorgement,” ruling that the “permanent injunction” reference in Section 13(b) only grants the FTC the ability to stop future actions of a targeted individual or company.